National Education Health and Allied Workers Union v University of Cape Town (C 131/99) [1999] ZALC 47 (25 March 1999)

45 Reportability

Brief Summary

Labour Law — Recognition agreement — Validity and termination — Applicant union seeking urgent interim relief to prevent eviction and maintain access to facilities under recognition agreement — Court finding that union's refusal to participate in consultative meetings constituted material breach of agreement — University lawfully terminating recognition agreement — Application for interim relief dismissed.

IN THE LABOUR COURT OF SOUTH AFRICA
(HELD AT CAPE TOWN)
CASE NO: C 131/99
DATE: 25­3­1999
In the matter between:
NATIONAL EDUCATION HEALTH AND       Applicant
AND ALLIED WORKERS UNION
and
THE UNIVERSITY OF CAPE TOWN         Respondent
JUDGMENT
BASSON, J:   
[1] This is an application for urgent interim relief in terms of which the applicant, the  
National   Education   Health   and   Allied   Workers   Union   (“NEHAWU”)   seeks  an  
order declaring that: 
1. The recognition agreement entered into between the applicant and the respondent  
on 6 March 1986 remains valid and in force;
2. Interdicting and restraining  the respondent from evicting the applicant  from its  
office on the premises of the respondent;
3. Interdicting   and   restraining   the   respondent   from   preventing   the   applicant   from  
utilising   facilities   afforded   to   the   applicant   by   the   respondent   in   terms   of   the  
recognition agreement; and in particular, 
4. Interdicting   and   restraining   the   respondent   from   disconnecting   the   applicant’s  
telephone, e­mail and fax facilities.

5. Interdicting and restraining  the respondent from redeploying and/or retrenching  
full­time shop stewards of the applicant.
[2] Further, in terms of an amended notice of motion, ordering that the provisions of  
paragraphs   1­5   above   operate   as   an   interim   interdict   with   immediate   effect  
pending   the   resolution   of   the   dispute   in   terms   of   section   24   of   the   Labour  
Relations Act 66 of 1995 (”the LRA”).   
[3] The  said  recognition  agreement  was attached   as  Annexure  B to  the  papers  (at  
pages 23 and further).   
[4] Important in this regard is clause 2 of the recognition agreement which sets out the  
objectives of the agreement as follows:
"The   purpose   of   this   agreement   is   to   regulate   the   relationship   between   the  
university (the respondent) and the union (the applicant) and in doing so, to strive  
to   establish   an   effective   and   cooperative   working   relationship   between  
them"(emphasis supplied).
[5] In giving effect to the cooperative working relationship, clause 9 of the agreement  
deals with consultative meetings and states that:
"Monthly meetings shall take place between not more than 15 members of the  
shop stewards' committee and an equal number of management representatives of  
the university."
[6] Also of decisive importance is clause 3.1.3 of the agreement which states  
that:
"The agreement shall commence on signature of this document and shall remain in  
force for a period of one year, unless either the university or the union acts in  
material   breach  of   this   agreement   and   the   other   party   gives   written   notice  of  
termination   to   the   defaulting   party   which   shall   take   effect   immediately   upon

service of such notice in addition to whatever other remedies may be available to  
the party at law"(emphasis supplied).
[7] A consultative meeting between the parties in terms of this recognition agreement  
took  place on 10 March 1999.   It was common cause between the parties that  
the following stance was taken by the applicant (and I quote from paragraph 5.1 of  
the applicant's papers at page 8):
“5.1 The   applicant's   decision   (is)   not   to  participate   in   any   university   structure   with  
management until two dismissed shop stewards of the applicant are reinstated."
[8] This stance of the applicant is also borne out by the minutes of this consultative  
meeting (attached to the papers).
[9] The requirements for granting urgent interim relief  were set out in the case of  
Ericsson  Motors Limited v Protea Motors & Another , 1973(3) SA 684 (A) at  
pages 691C­F:
"The granting of an interim interdict pending an action is an extraordinary remedy  
within the discretion of the Court where the right which it is sought to protect is  
not clear.   The Court's approach in the matter of an interim interdict was lucidly  
laid  down by Innes, JA  in   Setlogelo  v Setlogelo , 1914 (AD) 221 at 227.     In  
general, the requisites are:
(a) a right, which though  prima facie  established, is open to some doubt;
(b) a well­grounded apprehension of irreparable injury;
(c) the absence of an ordinary remedy."
In   exercising   its   discretion,   the   Court   weighs   inter   alia   the   prejudice   to   the  
applicant if the interdict is withheld, against the prejudice to the respondent if it is  
granted,   this   is   sometimes   called   the   'balance   of   convenience'.   The   aforegoing  
considerations are not individually decisive but are inter­related ...”.
[10] In the matter of  Webster v Mitchell , 1947 (WLD) 1186­1189, the Court suggested

the  following approach when considering the facts of an application  of this  
nature:
"The proper manner of approach I consider is to take the facts as set out by the  
applicant, together with any facts set out by the respondent which the applicant  
cannot   dispute,   and   to   consider   whether   having   regard   to   the   inherent  
probabilities, the applicant could on those facts obtain final relief at a trial.   The  
facts set up in contradiction by the respondent should then be considered.     If  
serious   doubt   is   thrown   on   the   case   of   the   applicant   he   could   not   succeed   in  
obtaining temporary relief, for his right,  prima facie  established, may only be open  
to 'some doubt'."
[11] Having regard to the purpose of the recognition agreement  in casu  (quoted above)  
and  especially   to   the   fact   that   its   objective   is   to   establish   an   effective   and  
cooperative working relationship between the applicant and the respondent, the  
action of the applicant in declaring that it would not participate in any university  
structure with management until two dismissed shop stewards were reinstated was  
clearly   a   material   breach   of   the   provisions   of   clause   2   and   clause   9   of   the  
recognition   agreement   which   deal   in   particular   with   consultative   meetings  
between the parties.   
[12] The   applicant   sought   to   remedy   the   breach   of   the   contract   in   a   letter   to   the  
university (the respondent) at page 40 of the papers (Annexure C).     It is to be  
noted that the letter of termination in terms of clause 3.1.3 (referred to above), was  
sent to the union on 15 March 1999, that is, five days after the breach had taken  
place.
[13] The letter by the union (the applicant) retracts the breach of the agreement in the  
following   words,   under   the   heading   "Termination   of   Recognition   Agreement"

following   words,   under   the   heading   "Termination   of   Recognition   Agreement"  
(which   words   also   clearly   indicate   that   the   fact   that   the   university   sought   to  
terminate the recognition agreement was made clear to the union at this stage) and

then proceeds as follows (at paragraph 2):
"1. We agree to retract to our demand for the reinstatement of the two dismissed shop  
stewards   and   we   commit   ourselves   to   the   CCMA   arbitration   process   that   is  
hearing their case.
2. We re­state our commitment to the recognition agreement and to working with  
UCT   on   all   matters   of   mutual   interest,   in   particular   we   agree   to   continue  
participating in future consultative meetings."
[14] This letter does not state (as the applicant's legal representative tried to argue) that  
there was no wilful breach of the recognition agreement.  It also does not state that  
the persons representing the union at the meeting of 10 March 1999 did not have  
the necessary mandate to state what they did (that is, that they refused to attend  
any future consultative meetings).   In fact, this letter made it clear that there was a  
breach of the recognition agreement and that it consisted of a refusal to participate  
in future consultative meetings.   
[15] In  the   event,   there   was  a  material  breach  of  the   recognition  agreement   by  the  
union.
[16] The university acted in terms of clause 3.1.3 of the recognition agreement ( supra) 
to   terminate   the   agreement.       Both   parties   had   voluntarily   agreed   that   such  
termination would be possible in the event of a material breach. The other party  
merely   gives   written   notice   of   termination   to   the   defaulting   party   and   such  
termination then takes effect immediately upon service of such notice.
[17] I am accordingly of the view that the recognition agreement was terminated by the  
university (the respondent) in its letter of 15 March 1999.
[18] I am further of the view that the union, in using the recognition agreement as a  
bargaining chip in another dispute  (that is, the dispute concerning the dismissal of

the said members of the union), took the risk and placed itself in the position in  
which it now finds itself, namely that the university would also exercise its rights  
in   terms   of   the   recognition   agreement,   especially   its   right   to   terminate   the  
agreement in the event of a material breach thereof.
[19] I   need   not   enter   into   any   of   the   other   alleged   breaches   of   the   recognition  
agreement.   It was   argued   in   terms   of   the   heads   of   argument   handed   up   to  
Court and also appeared from the papers that there was allegedly a breach also in  
regard to a previous strike and that there was also an alleged breach in regard to  
the use of one of the hall facilities of the university.   
[20] The breach that I have referred to above clearly is material in that it would be  
purposeless   to   carry   on   under   the   recognition   agreement   if   one   of   the   parties  
refused to attend the required consultative meetings (see in this regard also the  
case of  Sibonyone & Others v University
of Fort Hare , 1985 (1) 19 SA (CKSC) at 32F­33C.   
[21] The   respondent   (the   university)   therefore   acted   lawfully   in   terminating   the  
recognition  agreement and the applicant's (contractual) right is therefore open  
to serious doubt.     In other words, the applicant has failed to establish a   prima 
facie right.
[22] As   far   as   the   requirement   of   irreparable   harm   is   concerned,   (the   second  
requirement for the granting of urgent interim relief in the form of an interdict) it  
is unclear why the infringement of rights of the shop stewards would amount to  
irreparable harm as they have other remedies in terms of the LRA should they face  
unfair dismissal, or (in terms of section 23) should they in separate proceedings  
wish   to   attack   the   validity   or   the   actions   of   the   respondent   in   terms   of   the  
recognition agreement.

[23] It also is not clear to me, and it is not necessary for me to decide in view of the  
fact that the first factor is not present, that the rights which the union stands to  
lose, although substantial, is such that it would cause irreparable harm.
[24] There is, of course, also another remedy available to the parties in the present  
matter and that  would   be   to   refer   any   dispute   about   the   recognition  
agreement  to the Commission for Conciliation  Mediation and Arbitration  (“the  
CCMA”)   in   terms   of   section   24   of   the   LRA.     This   dispute   was   referred   to  
conciliation   only   yesterday   (even   though   the   letter   of   termination   was   already  
received on 15 March 1999).  Accordingly, also in this regard, I would, in normal  
circumstances, be wary to exercise my discretion in favour of the applicant, where  
the   underlying   dispute   has   not   been   referred   for   conciliation   timeously   to   the  
structures   provided   for   in   the   LRA.     This   discretion   is   exercised   in   terms   of  
section 157(4)(a) of the LRA, which states that the Court can refuse to exercise its  
discretion in favour of an applicant if it is not satisfied that the underlying dispute  
has been properly conciliated.
[25] As the respondent is no longer seeking an order as to costs, I need dwell on this  
matter any  further.
[26] In the event, I grant the following order:   The application is dismissed.   No order  
is made as to costs.
 _____________________                                   
  BASSON, J
Appearing for the Applicant: Ms Mandy Taylor
Cheadle, Thompson and Hayson
Appearing for the Respondent: Mr H.C. Nieuwout
Jannie de Villiers and Sons Attorneys

25 March 1999
Ex tempore